In his 1944 little masterpiece, Bureaucracy, Ludwig von Mises identified the supreme agent in the free market economy: the consumer.

The capitalists, the enterprisers, and the farmers are instrumental in the conduct of economic affairs. They are at the helm and steer the ship. But they are not free [...]]]> by Gary North, Lew Rockwell:

In his 1944 little masterpiece, Bureaucracy, Ludwig von Mises identified the supreme agent in the free market economy: the consumer.

The capitalists, the enterprisers, and the farmers are instrumental in the conduct of economic affairs. They are at the helm and steer the ship. But they are not free to shape its course. They are not supreme, they are steersmen only, bound to obey unconditionally the captain’s orders. The captain is the consumer.

Mises never deviated from this argument. He showed how customers’ bids in the free market provide profits to some capitalists, and losses to others.

Neither the capitalists nor the entrepreneurs nor the farmers determine what has to be produced. The consumers do that. The producers do not produce for their own consumption but for the market. They are intent on selling their products.

Read More @ LewRockwell.com

n what may be the most important story of the day, or maybe year, for a world in which there already is an $11 trillion shortfall in high-quality collateral (and declining every day courtesy of Ben’s monetization of Treasury paper) so needed to support the deposit-free liability structures of the shadow [...]]]> from Zero Hedge:

n what may be the most important story of the day, or maybe year, for a world in which there already is an $11 trillion shortfall in high-quality collateral (and declining every day courtesy of Ben’s monetization of Treasury paper) so needed to support the deposit-free liability structures of the shadow banking system (as most recently explained here), Bloomberg has just reported that Europe may begin a crackdown on that most important credit money conduit: the $80 trillion+ global shadow banking system, by effectively collapsing collateral chains, and by making wanton asset rehypothecation a thing of the past, permitted only with express prior permission, which obviously will never come: who in their right mind would allow a bank to repledge an asset which may be lost as part of the counterparty carnage should said bank pull a Lehman. The result of this, should it be taken to completion, would be pervasive liquidations as countless collateral chain margin calls spread, counterparty risk soars all over again, and as the scramble to obtain the true underlying assets finally begins.

Read More @ ZeroHedge.com

by Charles Hugh Smith, Of Two Minds:

The problem with trying to solve all our structural problems by injecting “free money” liquidity into financial Elites is that all [...]]]> About the claim that central banks will never let asset bubbles pop ever again–their track record of permanently inflating asset bubbles leaves much to be desired.

by Charles Hugh Smith, Of Two Minds:

The problem with trying to solve all our structural problems by injecting “free money” liquidity into financial Elites is that all the money sloshing around seeks a high-yield home, and in doing so it inflates bubbles that inevitably pop with devastating consequences.

As noted yesterday, the Grand Narrative of the U.S. economy is a global empire that has substituted financialization for sustainable economic expansion. In shorthand, those people with access to near-zero-cost central bank-issued credit can take advantage of the many asset bubbles financialization inflates.

Those people who do not have capital or access to credit become poorer. That is the harsh reality of neofeudal, neocolonial financialization. Neofeudalism and the Neocolonial-Financialization Model (May 24, 2012).

Read More @ OfTwoMinds.com

from MyBudget360.com:

The stock market provides a beautiful scent of success although most Americans will only catch a whiff of that aroma.  The S&P 500 is now up 145 percent from the gloomy low [...]]]> The process of inflating asset bubbles and transferring wealth to targeted groups. S&P 500 up 145 percent from 2009 low.

from MyBudget360.com:

The stock market provides a beautiful scent of success although most Americans will only catch a whiff of that aroma.  The S&P 500 is now up 145 percent from the gloomy low reached in 2009.  Even though this unrelenting trend upwards has added wealth to a few, the majority of Americans are still seeing the purchasing power of their dollars slowly erode.  The one secure location for wealth in housing is now being usurped by Wall Street as investors begin to invest heavily in the rental real estate business.  Speculation in the markets is once again booming.  Japan had a mini-crash this week but the media cycle continues to pretend that printing your way into prosperity is somehow as easy as having central bankers pushing play on the iPod and expecting the hits to come one after another.  The reason you likely do not feel the big gains of the recent run is because most of the gains have come from artificially low interest rates and companies slashing wages and squeezing profits out of current workers.

Read More @ MyBudget360.com

Have you ever wondered how the government’s misinformation gains traction?

What I have noticed is that whenever a stunning episode occurs, such as 9/11 or the Boston Marathon bombing, most everyone whether on the right or left goes along with the government’s explanation, because they can hook their [...]]]> by Dr. Paul Craig Roberts, PaulCraigRoberts.org:

Have you ever wondered how the government’s misinformation gains traction?

What I have noticed is that whenever a stunning episode occurs, such as 9/11 or the Boston Marathon bombing, most everyone whether on the right or left goes along with the government’s explanation, because they can hook their agenda to the government’s account.

The leftwing likes the official stories of Muslims creating terrorist mayhem in America, because it proves their blowback theory and satisfies them that the dispossessed and oppressed can fight back against imperialism.

The patriotic rightwing likes the official story, because it proves America is attacked for its goodness or because terrorists were allowed in by immigration authorities and nurtured by welfare, or because the government, which can’t do anything right, ignored plentiful warnings.

Read More @ PaulCraigRoberts.org

Reason TV’s Zach Weissmueller sat down to talk with Gibney, the man behind Taxi to the Dark Side and Enron: The Smartest Guys in the Room, about his latest documentary, We Steal Secrets: The Story of Wikileaks, which opens on May 24.

Kennecott Utah Copper officials announce that 100 people have permanently lost their jobs and warn that more cuts are on the horizon in the wake [...]]]> [Ed. note: 15% annual silver, 500k ounces annual gold and Kennecott’s Bingham Canyon Mine has produced more copper than any mine in history – about 18.1 million tons. All gone.]

Kennecott Utah Copper officials announce that 100 people have permanently lost their jobs and warn that more cuts are on the horizon in the wake of the April 10th landslide at the Bingham Canyon open pit mine.

by Dorothy Kosich, MineWeb.com

That volume of material would fill 21 Great Pyramids of Giza and cover New York’s Central Park 65-feet deep, he suggested.

Kennecott Utah Copper announced Thursday that 100 employees have permanently lost their jobs as the result of the landslide at Bingham Canyon last month and more staff reductions are anticipated later this month.

The layoffs were across the ranks of the salaried workforce and are effective immediately.

“At this time, Kennecott does not have the total number of employees impacted by the slide,” the company said in a news release. “Kennecott is continuing to take measures to reduce the impacts to its workforce by making employee preference a priority.”

Read More @ MineWeb.com

by Andrew Trotman, The Telegraph:

Judge John Gleeson is considering cancelling December’s so-called deferred prosecution agreement that gave HSBC immunity from claims it allowed terrorists to move at least $881m (£584m) around the financial [...]]]> HSBC’s $1.9bn settlement deal with US authorities over money laundering charges could be rejected, it was reported on Thursday night.

by Andrew Trotman, The Telegraph:

Judge John Gleeson is considering cancelling December’s so-called deferred prosecution agreement that gave HSBC immunity from claims it allowed terrorists to move at least $881m (£584m) around the financial system.

This could leaving the bank open to criminal prosecution and a ban from operating in America. However, HSBC disputes this.

The US Department of Justice (DoJ) is reportedly challenging Mr Gleeson’s need to sign off on the deal. The judge last mentioned the case in February, stating that he had not yet approved nor disapproved of the settlement.

In a statement, HSBC said: “For more than two years, our new leadership team in both New York and London has been implementing reforms and new controls, investing in compliance systems and staff, and putting in place the most effective global standards across our network to combat financial crime on a global basis.

Read More @ Telegraph.co.uk

The IRS scandal of targeting conservative groups is messy, and the Obama Administration is going to look like it was drug through a hog lot before it’s through.

Lois Lerner, who was in charge of overseeing tax exempt groups, was put on administrative leave (with pay) after she pled [...]]]> by Greg Hunter, USAWatchdog:

The IRS scandal of targeting conservative groups is messy, and the Obama Administration is going to look like it was drug through a hog lot before it’s through.

Lois Lerner, who was in charge of overseeing tax exempt groups, was put on administrative leave (with pay) after she pled the 5th. Funny thing though, before she pled, she made a statement that said she basically did nothing wrong. Then she answered a question and used her Constitutional right to not self-incriminate. Republican lawmakers say because she testified and made statements, she can’t have it both ways. Some say she waived her 5th Amendment right. This screams for a special prosecutor, and Democrats are not going to stand in the way. They are not going to cover for the White House. It is amazing to me how little the President claims to know about the IRS scandal, Benghazi and Department of Justice investigating journalists doing their jobs. I don’t know which is worse, a clueless President or a President knowing and doing nothing.

Read More @ USAWatchdog.com

In April of this year researches studying the H7N9 bird flu virus in China advised global governments to get prepared for the worst case scenario. According to the World Health Organization, H7N9 is one the most lethal influenza strains ever identified because it mutates eight times faster than a normal flu virus, and [...]]]> by Mac Slavo, SHTFPlan:

In April of this year researches studying the H7N9 bird flu virus in China advised global governments to get prepared for the worst case scenario. According to the World Health Organization, H7N9 is one the most lethal influenza strains ever identified because it mutates eight times faster than a normal flu virus, and according to official records, has a death-to-infection ratio of about 25%.

It was initially believed that the virus could only be transmitted to humans who have had direct contact with poultry. After 36 H7N9 deaths and 131 of infections officially reported since the virus was first identified, the worst case scenario that many feared may now be on the horizon.

The Sun China Morning Post is reporting that researches have confirmed that, not only can the virus be transmitted from one human to another, but it has gone airborne.

Read More @ SHTFPlan.com

It really has become a farce. A joke of the highest degree. Every time the US central bank Chairman comes out to announce a message markets react like crazy. Today was no exception; in fact, it was one of the most ridicule type of price moves. It is no secret that large [...]]]> from Wealth Wire:

It really has become a farce. A joke of the highest degree. Every time the US central bank Chairman comes out to announce a message markets react like crazy. Today was no exception; in fact, it was one of the most ridicule type of price moves. It is no secret that large traders have computerized their behaviour based on the words used during the speech. They sett buy/sell orders in real-time based on specific keywords. For instance, as a hypothetical example, as soon as the speech mentions “continue bond buying program” or  ”stop bond buying program” an algorhythm decides to buy or sell dollars, gold, or some specific stocks. That is indeed what the financial markets have become: a casino.

The metals have been subject to the same type of trading behaviour. It became blatant once again today. In fact, it is the third time this week that we witness extreme speculation in the metals with prices behaving accordingly. Silver, for instance, saw its peak today at $23.20 and its lows at $22.15, a difference of almost 5% intraday. The charts below tell it all. Note that the peak on the charts was during the speech of Mr. Bernanke. A bit later, prices came down triggered by this sentence in the speech: ”a few participants expressed concern that conditions in certain U.S. financial markets were becoming too buoyant….

Read More @ WealthWire.com